Writer Biography

Audrey Benson is a sophomore at Utah State University. She is her parent’s favorite child by default, as she is the only one.  Audrey loves being outdoors and is always ready for a vacation. She is a full-time student and is working towards a major in Biochemistry. 

This essay was composed in October 2022 and uses MLA documentation.

Audience: Voter-Eligible Americans 

IN 1921, CANADIAN SCIENTISTS Frederick Banting and Charles Best successfully isolated a hormone called insulin. The scientists were awarded patents two years later, which they sold to the University of Toronto for only $1 each, in the hopes of providing diabetics with an affordable medicine they so desperately needed (“100 Years”). Unfortunately, pharmaceutical companies today do not share the same vision as Banting and Best. A report by Rick Claypool found that “for 17 of the 20 top-selling drugs worldwide in 2020, revenue to pharmaceutical companies from U.S. sales exceeded sales revenue from all other countries in the rest of the world combined” (Claypool and Rizvi). This difference in revenue is not just a coincidence. According to an investigation done by the U.S. House Committee of Oversight and Reform, “These companies have specifically targeted the U.S. market for higher prices …because weaknesses in our healthcare system have allowed them to get away with outrageous prices and anticompetitive conduct” (U.S. Cong. House Comm. Oversight and Reform, i).

High prices for necessary medicines have caused extreme struggle and stress for many Americans. In a survey done by the Kaiser Family Foundation, 33% of Americans have reported not filling a prescription, taking over-the-counter substitutes, cutting pills in half, or skipping doses, all because of the cost (Hamel, et al.). Why is this the case? According to Aaron Kesselheim, “High drug prices are the result of the approach the United States has taken to granting government-protected monopolies to drug manufacturers, combined with coverage requirements imposed on government-funded drug benefits.” Current policy in the United States is allowing pharmaceutical companies to take advantage of Americans by charging exorbitant prices for their medicines. In a survey done by the Kaiser Family Foundation, 33% of Americans have reported not filling a prescription, taking over-the-counter substitutes, cutting pills in half, or skipping doses, all because of the cost (Hamel, et al.). Action must be taken by policymakers to change the rules by passing innovation-friendly policies, addressing monopoly protections for new drugs, and removing obstacles to creating generic medicines. In doing this, drug companies would be forced to allow healthy competition in the market and as a result, make medicine more affordable for everyone.

One issue that plagues the healthcare industry is the cost of innovation. Drug companies claim that in order to afford continued research and development, prices must be set high. The problem, though, is that no one knows how much the cost of innovation really is. According to Cynthia Ho, “Industry is also reluctant to acknowledge, and disclose, the role and amount of public funds in lowering the private cost and risk of drug discovery and development” (Ho and Vertinsky). If neither the government nor the public has access to this information, there can be no fair judgment on how fair prices are set. The government can combat this lack of transparency by creating policies to make this information public. A U.S. bill introduced on on April 7, 2022 proposes “to amend the Public Health Service Act to increase the transparency of pharmaceutical research costs” (U.S. Cong. Sen., Pharmaceutical Research Transparency). By passing this bill, the government and the public would be able to properly assess the impact of innovation on high drug pricing. If research and development really make medicine so expensive, the government could step in and provide financial relief for these companies, such as tax credits (Khullar and Bach). Unfortunately, because these records are not public, the government is limited in reducing research costs for the company and the financial burden for the consumer.

Monopoly protection practices are another reason for high drug prices. When a new drug is released, it qualifies for two kinds of protection through market exclusivity and patents. While patents are great protection for brand-new products, medicine patents are being abused to prevent healthy market activity. According to an article published by Harvard Business Review, “Patent protections can last decades because manufacturers often patent not just the original molecule but also minor changes to the drug like its coating or how it can be given” (Khullar and Bach). This practice allows drug companies to limit competition and set prices however they see fit while maintaining extended patent protection. One way the government could address this issue is by re-evaluating what drugs are eligible to receive a patent or not. According to Kristi Martin, “[U.S. Patent and Trademark Office] could consider updating its patent review process to incorporate information from FDA as well as whether minor modifications to a drug… should be granted patents.” If the review process was updated, it would limit how many times a company could apply for a patent for the same drug, therefore allowing medications to become eligible for generic versions sooner.  

Finally, the government can take action against high drug prices by removing obstacles preventing generic medications from reaching the market. Generic medications are a critical part of the drug market. They give the brand name medication competition, which usually leads to a reduction in price. Generics are also much cheaper than brand-name drugs, giving consumers a more affordable option. One barrier companies use to prevent generic drugs from entering the market is by paying for delay. According to the article from Harvard Business Review, “companies pay would-be competitors not to bring generics to market” (Khullar and Bach). In doing this, drug companies eliminate competition and have an excuse to raise prices even more to pay off the generic companies. The government can address this issue by creating policies to prohibit this kind of action.The government can take action against high drug prices by removing obstacles preventing generic medications from reaching the market. A U.S. bill introduced in 2021 proposed to, “prohibit brand name drug companies from compensating generic drug companies to delay the entry of a generic drug into the market” (U.S. Cong. Sen., Preserve Access). If this bill were passed it would significantly expand the market for generic medications and create needed competition with brand-name companies. This would lower prices to help all consumers, not just those with life-threatening illnesses.

Generic medications have been a great help to me in my life. I have severe allergies and need to be on a strong antihistamine with a strong decongestant to keep them under control. The price of the brand-name medication I take costs twice as much as the generic. Buying the generic version allows me to get double the amount for the price of one, making my medication more affordable. My medicine costs relatively little compared to patients with severe diseases and more costly medication, but the benefit of managing illnesses at a reasonable cost is the same.  

Loopholes in the United States government have allowed medication prices to skyrocket, but by changing the system we can make medicine more affordable for everyone. By passing innovation-friendly policies, addressing monopoly protections on drugs, and removing obstacles to generic medicines, progress can be made in the fight against high drug prices. As Frederick Banting said, “Insulin does not belong to me, it belongs to the world” (“100 Years”). By changing the system we can return to the idea of medicine belonging to the people who need it, not the companies who manufacture them. 

Works Cited

Claypool, Rick, and Zain Rizvi. “United We Spend.” Public Citizen, 31 Sept. 2021, https://www. citizen.org/article/united-we-spend-big-pharma-us-international-revenue-report/. Accessed 13 Oct. 2022.

Hamel, Liz, et al. “Public Opinion on Prescription Drugs and Their Prices.” Kaiser Family Foundation, 20 Oct. 2022. https://www.kff.org/health-costs/poll-finding/public-opin ion-on-prescription-drugs-and-their-prices/. Accessed 21 Oct. 2022.  

Ho, Cynthia, and Liza Vertinsky. “To Promote Innovation, Congress And Companies Should Support Drug Development Cost Disclosure.” Health Affairs, 28 Jul. 2022. https://www.healthaffairs.org/content/forefront/promote-innovation-congress-and-companies-should support-drug-development-cost. Accessed 21 Oct. 2022.  

Kesselheim, Aaron S., et al. “The High Cost of Prescription Drugs in the United States: Origins and Prospects for Reform.” JAMA, vol. 316, no. 8, 2016, pp. 858-71. https://jamanetwork.com/journals/jama/article-abstract/2545691. Accessed 21 Oct. 2022.  

Khullar, Dhruv, and Peter B. Bach. “3 Actions Congress Can Take to Reduce Drug Prices.” Harvard Business Review, 21 Feb. 2020. https://hbr.org/2020/02/3-actions-congress-can -take-to-reduce-drug-prices. Accessed 21 Oct. 2022.  

Martin, Kristi. “Policymakers’ Attention Turns to Drug Patents in the Debate on Prices.” The Commonwealth Fund, 7 Oct. 2021, https://www.commonwealthfund.org/blog/2021/ policymakers-attention-turns-drug-patents-debate-prices. Accessed 21 Oct. 2022.

“100 Years: From Gift to Greed.” T1International, https://www.t1international.com/100years/. Accessed 13 Oct. 2022.

United States, Congress, House, Committee on Oversight and Reform. Drug Pricing Investigation: Majority Staff Report, Government Publishing Office, 10 Dec. 2021, 117th Congress. https://oversightdemocrats.house.gov/sites/democrats.oversight.house.gov/files/DRUG%20PRICING%20REPORT%20WITH%20APPENDIX%20v3.pdf. Accessed 13 Oct. 2022.  

United States, Congress, Senate, Pharmaceutical Research Transparency Act of 2022. Congress.gov, https://www.congress.gov/bill/117th-congress/senate-bill/4037/text. 117th Congress, Senate Bill 4037, Introduced 7 Apr. 2022.  

United States, Congress, Senate, Preserve Access to Affordable Generics and Biosimilars Act. Congress.gov, https://www.congress.gov/bill/117th-congress/senate-bill/1428/text. 117th Congress, Senate Bill 1428, Introduced 9 Dec. 2021.